The table shows the demand curve for monster trucks. There are two monster truck producers. For simplicity, assume that the cost of producing a monster truck is zero. (AC=0AC=0, FC=0FC=0)
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The table shows the demand curve for monster trucks. There are two monster truck producers. For simplicity, assume that the cost of producing a monster truck is zero. (AC=0AC=0, FC=0FC=0)
| Q demanded | Price |
|---|---|
| 11 | $18$18 |
| 22 | $16$16 |
| 33 | $14$14 |
| 44 | $12$12 |
| 55 | $10$10 |
| 66 | $9$9 |
| 77 | $7$7 |
| 88 | $6$6 |
| 99 | $5$5 |
Assume the two producers initially collude to maximize profits, splitting production and profits evenly.
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